Additional Drill Rig at Kachi Lithium Brine Project
- A third drill rig has started at Lake's 100%-owned Kachi Lithium Brine Project in Catamarca Province, Argentina.
- The additional diamond drill rig will assess the geology and stratigraphy while the other drill rigs are rotary rigs.
- Drilling was completed in the first rotary drill hole to a depth of 240 metres with encouraging indications of conductive brines in thick sandy aquifers. Testing and results will be reported in the coming weeks.
- Lake's Olaroz-Cauchari Project continues to look promising given the recent results from the adjoining leases showing high grade lithium with high flow rates. Lake has progressed with the process to have drilling approved adjacent to this area.
Kachi Lithium Brine Project, Catamarca - Update on drilling
Conductive brines were intersected in two thick sandy aquifers but these horizons have proven challenging to drill with rotary and diamond drill rigs. Testing and results will follow in the coming weeks.
Based on the solid progress being made at Kachi, a third rig - a diamond drill rig - has been deployed and commenced operations adjacent to the second rotary drill rig, 11 kilometres to the south east of the recently completed rotary drillhole to assess whether the same conductive sandy aquifers can be intersected. The diamond drilling company has an excellent track record of drilling brines under salt lakes in Argentina. The intention is to assess which of the three rigs produces the best results and the drilling programme will then be extended based on these outcomes.
Olaroz - Cauchari Lithium Brine Project, Jujuy - Update on nearby drilling results
Further high-grade lithium brine results averaging 476 mg/L lithium with other holes up to 720 mg/L lithium with high flow rates of brines were reported from the leases immediately adjoining Lake's leases at the Cauchari Lithium Brine Project in Jujuy province by Advantage Lithium and Orocobre (ASX:ORE) (OTCMKTS:OROCF).
Lake's subsidiaries have progressed with the process to have drilling approved adjacent to this area and it is Lake's intention to target the same aquifers.
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About Lake Resources NL
Lake Resources NL (ASX:LKE) is a lithium exploration and development company focused on developing its 3 lithium brine projects and 1 hard rock project in Argentina, all owned 100%. The leases are in a prime location among the lithium sector's largest players within the Lithium Triangle where half of the world's lithium is produced. Lake holds one of the largest lithium tenement packages in Argentina (~180,000Ha) secured in 2016 prior to a significant 'rush' by major companies. The large holdings provides the potential to provide security of supply demanded by battery makers and electric vehicle manufacturers.
The three key brine projects, Kachi, Olaroz/Cauchari, and Paso, are located adjacent to major world class brine projects either in production or being developed in the highly prospective Jujuy and Catamarca Provinces. The Olaroz-Cauchari project is located in the same basin as Orocobre's Olaroz lithium production and adjoins SQM/Lithium Americas Cauchari project, where high grade lithium (600 mg/L) with high flow rates have been drilled immediately across the lease boundary.
The Kachi project covers 50,000 Ha over a salt lake south of FMC's lithium operation and near Albemarle's Antofalla project. Drilling at Kachi has confirmed a large lithium brine bearing basin over 22km long and over 400m deep. Drilling over Kachi is aimed to produce a resource statement in 2018, anticipated in Oct 2018.
Drilling will commence in coming months at Olaroz-Cauchari now that tenure has been confirmed in a landmark agreement in March 2018. This will provide several catalysts for the company's growth. Scope exists to unlock considerable value through partnerships and corporate deals in the near-term.
Significant corporate transactions continue in adjacent leases with development of SQM/Lithium Americas Olaroz/Cauchari project with an equity/debt investment over $300 million and Advantage Lithium's equity transaction in some of Orocobre's leases. LSC Lithium has also raised over $60 million on a large lease package in similar areas as Lake's properties. Nearby projects of Lithium X were recently acquired via a takeover offer of C$265 million completed March 2018. The northern half of Galaxy's Sal de Vida resource was purchased for US$280 million by POSCO in June 2018.
The demand for lithium continues to be strong for lithium ion batteries in electric vehicles, according to recent data from the leading independent battery minerals consultant - Benchmark Mineral Intelligence. Supply continues to be constrained suggesting good opportunities for upstream lithium companies for many years.
Lake Resources NL